We calculate and present two values for the total cost of loan:
Short term - after three years (A)
Full term of loan, typically 30 years (B)
These values are presented in the Compare loan products tab in broker tools:
Total costs are calculated using the following formula:
Total cost = Once-off Fees + (Periodic Fees x #Periods) + Repayment 1 x Period 1 + Repayment 2 x Period 2 + Repayment 3 x Period 3 - Offset Benefit - Cashback
Where:
Once off fees are upfront and settlement fees
Periodic fees are monthly or annual fees
Repayment and Periods are specified in product details section of the Compare loan products tab
Offset Benefit is a result of client putting funds into an offset account and is described here
Cashback is lender discount offer and is described here
Periods:
Fees:
In this example, total costs over the full term are:
= $1,048 + $3,136 x 36 + $3,155 X 324 - $0 - $0
= $1,136,164
Or:
